Finmin issued orders on grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2012-13

No.7/24/2007/E III (A)
Government of India
Ministry of Finance
Department of Expenditure
E III (A) Branch

New Delhi, the 27th September, 2013

OFFICE MEMORANDUM

Subject : Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2012-13.

The undersigned is directed to convey the sanction of the President to the grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) equivalent to 30 days emoluments for the accounting year 2012-13 to the Central Government employees in Groups 'C’ and 'D’ and all non-gazetted employees in Group 'B' who are not covered by any Productivity Linked Bonus Scheme. The calculation ceiling for payment of ad-hoc Bonus under these orders shall continue to be monthly emoluments of Rs. 3500/-, as hitherto. The payment of ad-hoc Bonus under these orders will also be admissible to the eligible employees of Central Para Military Forces and Armed Forces. The orders will be deemed to be extended to the employees of Union Territory Administration which follow the Central Government pattern of emoluments and are not covered by any other bonus or ex-gratia scheme.

2. The benefit will be admissible subject to the following terms and conditions:

(i) Only those employees who were in service as on 31.3.2013 and have rendered at least six months of continuous service during the year 2012-13 will be eligible for payment under these orders. Pro-rata payment will be admissible to the eligible employees for period of continuous service during the year from six months to a full year, the eligibility period being taken in terms of number of months of service (rounded off to the nearest number of months).

(ii) The quantum of Non-PLB (ad-hoc bonus) will be worked out on the basis of average emoluments/calculation ceiling whichever is lower. To calculate Non-PLB (Ad-hoc bonus) for one day, the average emoluments in a year will be divided by 30.4 (average number of days in a month). This will thereafter be multiplied by the number of days of bonus granted. To illustrate, taking the calculation ceiling of monthly emoluments of Rs, 3500 (where actual average emoluments exceed Rs. 3500), Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs.3500x30/30.4 = Rs.3453.95 (rounded offto Rs.3454/-).

(iii) The casual labour who have worked in offices following a 6 days week for at least 240 days for each year for 3 years or more(206 days in each year for 3 years or more in the case of offices observIng 5 days week), will be eligible for this Non PLB (Ad-hoc Bonus) Payment. The amount of Non-PLB (ad-hoc bonus) payable will be (Rs.1200x30/30.4 i.e.Rs.1184.21(rounded off to Rs,1184/-). In cases where the actual emoluments fall below Rs.1200/- p.m., the amount will be calculated on actual monthly emoluments.

(iv) All payments under these orders will be rounded off to the nearest rupee.

(v) The clarificatory orders issued vide this Ministry’s OM No.F.14(10)-E. Coord/88 dated 4.10.1988, as amended from time to time, would hold good.

3. The expenditure on this account will be debitable to the respective Heads to which the pay and allowances of these employees are debited.

4. The expenditure incurred on account of Non-PLB (Ad-hoc Bonus) is to be met from within the sanctioned budge provision of concerned Ministries/Departments for the 

current year.

7th Pay panel formed, retirement age may go up 62 yrs

The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners.

 The national capital, home to a vast majority of central government employees, is headed for elections this November. And so are four other states, followed by the general elections sometime early next year. This, more than anything else, explains the central government's hurry to promise its employees higher wages.

 

The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners. The fact that this award is one more in a long list of expenditure-heavy pre-election programmes, will mean several consequences for India's finances. Back of envelope calculations suggest that even if the increments in the 6th pay commission were to be matched, the centre's wage bill could rise by up to Rs 1 lakh crore in 2016.

 

But on the other hand, this payout will spark a surge in consumption starting that year. Why? The sixth pay commission award amounted to around 0.5 percent of GDP and a tidy sum was handed out as arrears in the start of 2008. That extra spending power meant that the ensuing slowdown was mitigated to some extent. This could play out again in 2016.

 

Meanwhile, CNBC TV18 learns that the proposal to extend the retirement age of central government employees by two years has received fresh impetus. A decision on this could be taken within a week or two, and would be the second major populist decision by the UPA to woo the urban middle class and the powerful government employee mass in Indian society.

D.A Order from Department of Posts

Promotion and postings of Junior Administrative Grade (NFSG) officers of Indian Postal Service, Group 'A' to Senior Administrative Grade (SAG) of the Service and transfers/postings of regular SAG officers of Indian Postal Service, Group 'A'.

Shri H K Sharma(lPoS-1979), PMG Northern Region has been transferred to Dte as DDG (Work Study & Manual Revision) and Shri George Ninan (lPoS-1981) has been transferred and posted as PMG (BD&Mktg) Tamil Nadu Circle. 

Shri V Ramulu (IPoS 1992) DPS,Nagpur Region has been posted as PMG NR-Kozhikode. 

Shri M. Venkateswarlu (IPoS 1992) DPS Vijayawada Region AP Circle has been posted as PMG CR-Kochi.

To view Department of Posts (Personnel Division) No. 1-3/2013-SPG dated 25th September, 2013 please Click Here.

Payment of Dearness Allowance to Central Government employees - Revised Rates effective from 01.07.2013

7th Pay Commission for central govt employees announced

Prime Minister Approves the Constitution of Seventh Central          Pay Commission; Recommendations   are Likely to be                      implemented with effect from 1st January, 2016 

Prime Minister Dr. Manmohan Singh today approved the constitution of the 7th Pay Commission, which is likely to impact at least 85 lakh central government employees and pensioners.

The recommendations of the Pay Commission are likely to be implemented with effect from January 1, 2016, considering that it takes around two years for the commission to submit its report and the recommendations to take effect. 

                     The Finance Minister ShriP.Chidambaram in a statement said here today that the Prime Minister has approved the constitution of the Seventh Central Pay Commission.

            The fourth, fifth and sixth Central Pay Commissions’ recommendations were implemented as follows:

4^th CPC                       1.1.1986

5^th CPC                       1.1.1996

6^th CPC                       1.1.2006

            The average time taken by a Pay Commission to submit its recommendations has been about two years.  Accordingly, allowing about two years for the 7^th CPC to submit its report, the recommendations are likely to be implemented with effect from 1.1.2016.

            The names of the Chairperson and members as well as the terms of reference (ToR) of the 7^th Pay Commission will be finalised and announced shortly after consultation with major stakeholders.

Courtesy:- ndtv.com

GDS bonus ceiling raised from Rs.2500 to Rs.3500 from this year itself - approved by Cabinet

The Union Cabinet today approved the proposal of the Department of Posts to enhance the ceiling for calculation of ex-gratia bonus payable to Gramin Dak Sevaks from Rs. 2,500/- to Rs.3,500/- same as that prescribed for the regular departmental employees. The decision would be applicable with prospective effect that is from the accounting year 2012-13 payable in 2013-14.

India Post pushes ahead with banking plan despite opposition

India Post needs the government’s permission for the Rs.500 crore that is needed to set up a bank if it gets a licence from RBI. Photo: Hindustan Times

Mumbai: Despite strong opposition from the finance ministry, the postal department plans to approach the Union cabinet next month seeking capital of up to Rs.1,900 crore for a proposed commercial bank, according to two people familiar with the development.

To be called Post Bank of India, its branches will be linked to India Post’s vast network of post offices and will promote goals of financial inclusion, its supporters say.

“The department has decided to move the cabinet by October to seek the capital for Post Bank,” said a senior bureaucrat familiar with the proposal. The official requested anonymity, citing sensitivity of the matter. The second person, a consultant, also declined to be identified.

An email sent to financial services secretary Rajiv Takru on Tuesday remained unanswered at the time of writing this story.

India Post needs the government’s permission for the Rs.500 crore capital that is needed to set up the bank if it gets a licence from the Reserve Bank of India (RBI). While many government departments support the plan, some—mainly the department of financial services—have raised serious reservations, the official quoted earlier said.

India Post estimates an immediate requirement of Rs.700 crore and an additional Rs.1,200 crore in the first five years of its operations.

The move comes as the government prepares to launch a new bank exclusively for women with a capital base of Rs.1,000 crore.

The postal department, one of 26 contenders for banking licences, decided to rush with the proposal to the cabinet because it needs to convince RBI that it has enough funds if indeed Post Bank is shortlisted, the official said.

Global consultancy firm Ernst and Young LLP (EY) has drafted the blueprint for the proposed bank.

RBI governor Raghuram Rajan wants new banking licences to be issued by January-end, before deputy governor Anand Sinha, who has been spearheading the licensing process, retires. RBI is currently scrutinizing the applications and is also in the process of setting up a high-profile panel, to be headed by former RBI governor Bimal Jalan, to screen them.

Contenders for the new banking licences include L&T Finance Holdings Ltd, Aditya Birla Financial Services Group, Mahindra and Mahindra Financial Services Ltd, LIC Housing Finance Ltd, Tata Capital Ltd, IDFC Ltd, Reliance Capital Ltd and Bajaj Finserv Ltd.

In August, the expenditure department of the finance ministry had rerouted an earlier draft cabinet note from India Post seeking Rs.1,900 crore for the banking entry to another wing of the ministry. It asked the postal department to first seek the approval of the expenditure finance committee.

The expenditure finance committee, headed by the expenditure secretary, normally scrutinizes proposals for amounts of more than Rs.300 crore and for the creation of new autonomous organizations, regardless of the amount.

Within the finance ministry, the department of financial services opposes the move, saying the postal department does not have the expertise to run a bank, including handling credit and other banking functions. It feels the business proposal is unlikely to be viable.

But the postal department does not agree with this view, saying it has several years’ experience in deposit mobilization and that Post Bank of India will be run by professional management using its strong network. The postal department has close to 155,000 offices spread across the nation, as many as 139,040 of which are in rural areas.

Each rural post office covers around 6,000 people on an average, and urban post offices cover about 24,000 people each, according to a 2011 estimate.

As of 31 March, the outstanding balance under the Post Office Savings Scheme stood at Rs.6.05 trillion, equivalent of half the deposits of State Bank of India, the country’s largest commercial bank, and double that of the largest private lender ICICI Bank Ltd.

According to an interim report by EY in April, the proposed bank will focus on those at the bottom of the pyramid, or the poor, in non-metro centres, and avoid urban areas that are already well-served by existing banks.

People who already hold deposits with the Post Office Savings Scheme will have the option to transfer these to the proposed new bank, but this will not be compulsory, according to the official quoted earlier.

To begin with, Post Bank of India plans to open 300-400 branches, each also managing a specific number of postal outlets.

‘India' - A Philatelic Journey' book released by Hon'ble President of India

'India- A Philatelic Journey’, was released by Hon’blePresident of India on 3rd September, 2013 at Vigyan Bhawan in the inauguration ceremony of 11th Asian Pacific Postal Union Congress. The book gives a glimpse of our country having chapters on Mahatma Gandhi, freedom struggle, art & culture, wild life, flora & fauna, sports and heritage sites of India.

The book has been made in collaboration with the Times of India Group. The designing, printing and editing has been done by the Times of India Group. Thepackaging of the book is excellent; it is inside a beautifully designed Shrink –wrap box. The most important thing which differentiates it from other coffee table books is that real stamps are used to describe the above mentioned subjects. One side of the page have the text and other side have stamps related to the subject. Approximately 117 stamps issued since 1974 to 2012 have been inserted, in original, in each book. This book is a limited edition and exclusively for niche customers. Only 800 copies are available for sale.

The book can be purchased from National Philatelic Museum, Dak Bhawan, New Delhi. This will also be made available to major philatelic bureaux. Interested customers can also place their orders to the nearest bureaux or send an email to Shri V.K.Singh, ADG(Philately) on vksinghs@yahoo.co.in. The price of the book is kept as Rs. 5500.